Logitech expects smaller drop in full-year sales, reports slightly lower Q3 revenue

Logitech International, the computer peripheral maker, under its new CEO Hanneke Faber, forecasts a reduced decline in annual sales and reported slightly lower third-quarter revenue on Tuesday. 

Sales for the quarter ending on December 31 dipped to $1.26 billion from $1.27 billion a year earlier. Logitech, known for its computer mice, keyboards, and webcams, continues to navigate challenges stemming from a downturn in consumer and business spending, along with high comparables.

The company now anticipates an annual sales decline of 6 per cent-7 per cent, to $4.2 billion-$4.25 billion. This is an improvement from the earlier forecast of a 9 per cent-12 per cent decline.

Logitech also projects non-GAAP operating income to grow by 4 per cent-12 per cent, ranging from $610 million to $660 million. The previous outlook had placed annual non-GAAP operating income in the range of $525 million to $575 million.

Logitech has been addressing challenges posed by customers grappling with high inflation and business uncertainty about future economic developments, particularly as they transition to hybrid working models. 

The company, headquartered in Lausanne, Switzerland, and Newark, California, reported that its non-GAAP operating income rose to $248 million during the period, which is traditionally the most critical quarter of its fiscal year.

Hanneke Faber, who assumed the role of CEO on December 1, succeeding long-time CEO Bracken Darrell, stated, “Our teams executed well, continuing our long record of exceptional product innovation... But we will not be satisfied until we return to top-line growth.”

(With Reuters Inputs)